Investor Selling At An All-Time High

Investor selling hit an all-time high in 2024, marking a major turning point in investor activity.

While the share of investor buyers edged slightly higher, the share of investors selling jumped to 10.8%, the highest in the report’s history, according to a new report from Realtor.com. 

Here’s what agents need to know.

Investor Buying vs. Selling: A Narrowing Gap

In 2024, 13.0% of homes were purchased by investors. That’s a slight uptick from 2023, but still below the 2022 peak of 13.3%. At the same time, 10.8% of sellers were investors, up from 10.1% the year before. 

The result is the smallest gap between investor buying and selling since 2019.

That means less net investor demand overall, especially compared to the pandemic-era buying frenzy, when investor activity helped drive up prices and competition for entry-level homes.

As Realtor.com’s Danielle Hale put it:

“Investor trends signal a transition. Nationwide, investors picked up more homes on net in 2024, as smaller investors were a growing majority of investor buyers. 

“But with investor selling at a new high, the market saw the smallest net investor buying activity in five years, lessening one of the notable headwinds for entry-level buyers who often compete with investors.”

Small Investor Share Hits New Record

This year’s data also shows a rise in small investors, defined as those who’ve purchased fewer than 10 homes. In 2024, they made up 59.2% of all investor purchases, the highest share ever recorded.

• Small investors purchased 361,900 homes in 2024, a 3.7% increase year-over-year.
• Large investors (those buying 50+ homes) accounted for just 21.7% of investor purchases, the lowest share since 2007.
• Large investor activity dropped by 8.7% year-over-year, totaling 132,500 purchases, the lowest since 2018.

For agents, this trend means more opportunities to work with mom-and-pop investors or small-scale landlords who are active in the market, even as institutional players step back.

Cash is No Longer King (At Least Not as Much)

Another key shift: fewer investors are buying with all cash.

Even as cash purchases became more common in the broader housing market, investor cash sales declined. And for the first time in years, small and large investors alike are leaning more heavily on financing.

• Small investor cash purchases dropped from 65.6% in 2023 to 62.0% in 2024, the lowest since 2008.
• Large investor cash purchases fell from 73.2% to 68.9%, their lowest level since 2015.

This could mean more opportunities for agents and lenders to build relationships with investor clients who now need mortgage support or financing strategies to compete.

Top States for Investor Activity (and Opportunity)

Investor behavior varies widely by state, with some markets seeing more investor selling (freeing up inventory) and others still dominated by investor demand.

States with the highest investor buyer share in 2024:

1. Missouri (21.2%)
2. Oklahoma (18.7%)
3. Kansas (18.4%)

States with the highest investor seller share:

1. Oklahoma (16.7%)
2. Missouri (16.7%)
3. Georgia (15.9%)

Net-negative investor impact (more buyers than sellers):

1. Hawaii
2. Montana
3. Washington, D.C.

Net-positive investor impact (more sellers than buyers):

1. California
2. Minnesota
3. Oregon

Agents working in net-positive states may find less investor competition and more opportunities for owner-occupant clients. 

In net-negative states, the opposite holds true: competition from investors is still intense.

Key Takeaways for Real Estate Agents

Whether you’re focused on primary homebuyers or you specialize in working with investors, this shift matters. Here’s what to keep in mind:

• The investor wave is changing shape. Large investors are backing off while small investors take the lead.
• More investors are selling than ever before, creating new inventory in select markets.
• Financing is playing a bigger role, especially among small investors, opening the door for more lender-agent collaboration.
• Your local investor landscape matters. Look at both buyer and seller trends in your area to find the real opportunities.

Agents who study those signals and work valuable takeaways into their conversations and follow-up will be the ones best positioned to build trust and grow their client base.